how to get a free credit report or credit score?

Let us try to understand what is a credit report first.

During our school days, we used to get report cards from our teachers. Those cards used to contain our performance in various subjects and then adding up those would lead to the final score.

Same way, a credit report is a compilation of scores of an individual on various parameters and basically a summary of a borrower’s risk profile.

The parameters included are default history, unsecured loans, secured loans and many other criteria’s.

Let us look at a sample Credit report.

get free credit report

get free credit report

The one marked in yellow is the credit score out of 900.

The score would always lie between 300 to 900 as mandated by RBI.

Normally, a score above Rs. 750 is considered to be a healthy score but depends from agency to agency. The financier would use these credit reports to gauge your credit worthiness. If your credit score is good, you can too negotiate with the financier on interest rates, payment terms and much more.

 

How can you improve your credit worthiness?

Make your bill payments on time

Avoid taking too much credit

Avail both secured and unsecured loans

Check your credit report on a timely basis

Do not apply for too many loans

 

Factors which might have a negative effect on your credit score:

Do not use your credit limit completely

Sum total amount of your debt at any point of time

New applications for loans to lending authorities

Rejection of loan applications

 

So, no doubt a credit report is very important for two reasons first deciding on your credit worthiness and second deciding on many other important factors like the interest rates on loans, loan tenure, loan amount etc.

So, this blog would give you a gist and why the credit score is important to all of us. The credit score would also serve you as a negotiation tool on many factors.

So, are there any credit scores or credit reports available for free in the market? The answer is yes, you can get free credit score. There are couple of websites which help you get free credit scores. Right now the Experian Credit Score is available for free, you can click here and get the report.

 

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